“The Big Beautiful Breakup”

6th June 2025

Labour wins surprise Scottish by-election,Musk-Trump feud threatens SpaceX contracts also Big Boston Judge halts Trump’s ban on Harvard students and lastly UK cracks down on illegal financial influencers. Read to get into the details.

• Major Headlines

  
  

  • Labour Pulls Off Surprise Win in Scottish By-Election Amid Tense Campaign

  • In an unexpected turn, the UK’s Labour Party has clinched a win in the Hamilton, Larkhall and Stonehouse by-election for the Scottish parliament—marking a rare boost for Prime Minister Keir Starmer after a rocky stretch for his government.

  • The fiercely contested race followed the passing of a former minister and saw Labour’s Davy Russell narrowly beat the Scottish National Party (SNP), with Reform UK finishing a strong third. The campaign was marred by sharp tensions, especially around race, after Reform leader Nigel Farage drew criticism for repeatedly targeting the background of Scottish Labour leader Anas Sarwar, who is of Pakistani descent.

  • Despite predictions that the SNP would hold the seat, Russell’s victory—by just over 600 votes—sent a pointed message. “The poison of Reform isn’t us, it isn’t Scotland,” he told supporters after the results came in.

  • While Labour will welcome the win as a morale boost, especially after falling public support since last year’s general election, Reform’s surprisingly strong showing has raised eyebrows. Known for its anti-immigration and anti-EU stance, the party’s traction in Scotland—traditionally less receptive to that brand of politics—suggests shifting dynamics ahead of next year’s Scottish parliament elections.

  • The race also sparked controversy over a misleading campaign video from Reform, falsely claiming Sarwar had said he’d prioritize the Pakistani community. Labour called the ad “blatantly racist,” while SNP leader John Swinney urged voters to reject such tactics. Farage, in turn, accused Sarwar of stoking sectarianism. CityAM 

    
    
    
    

  • Musk-Trump Feud Puts $22 Billion in SpaceX Contracts—and U.S. Space Goals—on Shaky Ground

    
    

  • A high-profile feud between Elon Musk and President Donald Trump is casting a shadow over roughly $22 billion in SpaceX government contracts and raising alarms about potential setbacks to the U.S. space program. The dispute erupted after Musk criticized Trump’s tax and spending policies, prompting a fiery response from the president. Trump threatened to cancel federal contracts with Musk’s companies, escalating tensions that had previously been kept behind closed doors.

  • Musk responded in kind on social media, even saying he would begin decommissioning the Dragon spacecraft—NASA’s only U.S. vessel currently capable of carrying astronauts to and from the International Space Station. Though he later walked back the comment, calling it a “good idea” to cool off, the incident marked a rare and dramatic public flashpoint between a president and one of NASA’s most crucial commercial partners.

  • The Dragon capsule is central to the U.S. spaceflight program, and any interruption in SpaceX’s operations could ripple through both civilian and military projects. With Pentagon contracts also in the mix, the stakes go well beyond NASA. The White House hasn’t made a formal move yet, but Musk’s outburst—and Trump’s unpredictability—have raised real questions about whether politics might interfere with long-term space goals.

  • Just a year ago, Musk and Trump had a close working relationship, with Musk even heading Trump’s initiative to streamline the federal government. That collaboration helped SpaceX win support for ambitious projects, including a Mars-centered mission roadmap and space-based missile defense plans. Now, that partnership appears to be unraveling, and the U.S. space agenda may hang in the balance. Financial Times 

    
    
    
    

  • Judge Blocks Trump’s Ban on Harvard’s International Students Amid Escalating Legal Fight

    
    

  • A federal judge in Boston has temporarily blocked President Donald Trump’s attempt to bar international students from entering the U.S. to study at Harvard University. The ruling, handed down by U.S. District Judge Allison Burroughs on Thursday, stops the administration’s latest proclamation from taking effect while legal challenges move forward. In her decision, Burroughs warned that the directive would cause “immediate and irreparable injury” to both the university and its students.

  • The legal fight stems from Trump’s order to suspend entry of foreign nationals enrolled at Harvard for six months, citing national security concerns. But Harvard quickly pushed back, calling the order a violation of a previous court ruling—and a threat to the university’s core mission. “Without its international students, Harvard is not Harvard,” the school wrote in its court filing, stressing that more than a quarter of its students come from outside the U.S.

  • This isn’t the first legal clash between Harvard and the Trump administration. Just last month, the same judge blocked a separate attempt to prevent the university from enrolling new international students. The latest proclamation even directs the State Department to consider revoking existing academic visas—something Harvard says lacks legal and factual justification. The school argues that if national security were the real issue, the order wouldn’t single out students only attending Harvard.

  • Tensions between the White House and Harvard have been building for months. In addition to visa restrictions, the administration has frozen federal grants and threatened the university’s tax-exempt status. A White House spokesperson described Harvard as a “hotbed of anti-American, anti-Semitic, pro-terrorist agitators”—claims the university has strongly denied. Harvard insists these actions are politically motivated retaliation for refusing to bend to government pressure on campus governance and academic freedom. Bloomberg 

    
    
    
    

  • UK Cracks Down on Rogue 'Finfluencers' in Global Regulatory Push

  • The UK’s financial regulator is stepping up efforts to rein in so-called “finfluencers”—social media personalities promoting financial products without proper authorisation. In a new coordinated move, the Financial Conduct Authority (FCA) announced on Friday that it has partnered with regulators in Australia, Canada, Hong Kong, Italy, and the United Arab Emirates to target misleading or illegal financial content online.

  • As part of the clampdown, the FCA is requesting the removal of 650 posts or videos across social media platforms. It’s also taken further action at home, arresting three individuals, issuing seven cease-and-desist letters, and sending out 50 public warnings. These warnings are expected to result in the takedown of not only social media posts but also websites operated by unlicensed financial promoters.

  • The FCA has been vocal about the risks of financial advice being shared by unqualified influencers, warning last year that such activity could lead to criminal charges. “Our message to finfluencers is loud and clear: they must act responsibly and only promote financial products if they’re authorised to do so—or face the consequences,” said Steve Smart, the FCA’s joint executive director of enforcement and market oversight.

  • Meanwhile, scrutiny is also building in Parliament. The Treasury Committee has written to Meta, the parent company of Facebook and Instagram, pressing for answers about how it handles financial content. Lawmakers say Meta has been slower than other platforms to remove misleading posts flagged by the FCA—a concern that may prompt further regulatory pressure in the months ahead. CityAM 

    
    

    Minor Headlines 

  • Amazon Agrees to UK Measures Aimed at Combating Fake Reviews. CityAM 

  • UK Blocks Executive Bonuses at Thames Water, Five Others Over Pollution. CityAM 

  • Reform UK Party Chairman Resigns Suddenly. Bloomberg 

  • Swiss Central Bank Rejects Claims of Currency Manipulation After U.S. Watchlist Inclusion. Bloomberg 

  • Moody’s Downgrades Nissan’s Credit Rating to Ba2. Reuters

  • Nippon Steel, U.S. Government Request Brief Litigation Pause to Address Deal Issues. SiftedEU 

  • Circle Stock Soars in Strong NYSE Debut, Boosting Stablecoin Sector. Financial Times 

  • Dassault Systèmes Pushes Back Earnings Goal Timeline to 2029. SiftedEU 

Earnings

• Dollar Tree topped Q1 earnings and revenue expectations as more affluent shoppers traded down in a weak consumer environment, but projected a 50% profit drop in Q2 due to steep China tariffs and Family Dollar servicing costs. The company expects profits to rebound in the second half as tariff pressures ease. Bloomberg 

• Dollar General delivered a Q1 beat and raised its outlook, benefiting from increased foot traffic from value-seeking higher-income shoppers. While the retailer warned of ongoing consumer spending pressures, it plans to offset most tariff impacts through pricing and cost efficiencies. Bloomberg 

• CrowdStrike beat earnings but missed Q2 revenue expectations, reporting $4.4B in annual recurring revenue and $194M in net new ARR. Despite solid figures, investor sentiment remains cautious in the wake of last year’s major global outage. Bloomberg 

• Hewlett Packard Enterprise posted a Q2 beat and lifted its guidance, driven by strong demand for AI servers and hybrid cloud solutions, even as it absorbed a $1.36B impairment charge. Reuters 

• Campbell’s topped Q3 earnings and revenue forecasts, helped by strong home-cooking trends and favorable shipment timing. However, its snack division continued to underperform amid tighter consumer budgets and rising competition. Wall Street Journal 

• Dell fell short on Q1 earnings but beat on revenue and raised its full-year profit outlook, citing "unprecedented demand" for AI systems. The company expects $7B in AI-related shipments next quarter, supporting margin expansion. CBNC 

• Costco exceeded Q3 earnings and revenue expectations, driven by 8% comparable sales growth and a 16% surge in e-commerce. The retailer navigated tariff headwinds via expedited and local sourcing strategies but held off on raising prices or issuing a full-year forecast. CBNC 

• Ulta Beauty beat Q1 estimates and raised guidance as demand remained strong among younger shoppers drawn to exclusive and celebrity-backed brands like Beyoncé’s and Rihanna’s, despite broader signs of consumer caution. CBNC 

• Royal Bank of Canada missed Q1 earnings targets after increasing loan-loss provisions amid economic uncertainty and soft consumer and business activity, although most business lines reported stable income. Bloomberg 

• Best Buy beat Q1 earnings but fell short on revenue and lowered its full-year outlook as U.S. comparable sales slipped 0.7%. Tariff-related costs and weakness in appliances and home theater segments weighed on results. CBNC 

• Kohl’s beat Q1 earnings and met revenue estimates, with comparable sales down just 3.9%. The retailer ousted its CEO as it continued efforts to turn around the business. Bloomberg 

Foot Locker missed both Q1 earnings and revenue forecasts, with a 2.6% drop in same-store sales, ahead of its pending $2.4B acquisition by DICK’s Sporting Goods. Bloomberg

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  Gen Z Word of the Day 

  
  

• Vibe Check

• To check someone's energy or mood.